7 reasons to never throw your receipts, experts warn
Future, you will be happy to have kept them.
It is not a secret that many peopledoes not like personal finances. Not only can the subject be confusing (and let's face it, boring), but it can also arouse anxiety and fear. However, the worst thing you can do with regard to your personal finances is to ignore them. To stay financially in good health, you will want to set up systems that work and regularly check your progress. An easy starting point is with your receipts. Although you probably don't need to save proof of purchase for each gum stick you buy, there are some receipts that you want to hang on. Here, financial experts tell us about the main reasons to save your receipts and how to do it easily. Following their advice could save you major money and headache - in the future.
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1 You may need your receipts for taxes.
The main reason why you want to record your receipts is for tax purposes. In particular, you will want to record the receipt for all the items you deduce from your taxes. "This includes receipts for charitable donations, commercial expenses and home office expenses," saidMichael Collins, CFA, aProfessor at the Gerrish School of Business at the Endicott College. "You should keep these receipts in a safe place in case you are audited by IRS."
Larry Hendrickson,,Founder and Director Partner From G & H Financial Group to North Canton, Ohio, recommends organizing these receipts in files. Whenever you buy something that you plan to raft on your taxes, you can drop the receipt inside. In this way, once the tax season will take place, you will be ready to deposit and not let your email search for proof that you have given $ 500 to charitable works. "Keeping these receipts in an organized system will put your life with the life of your much more fluid CPA," explains Hendrickson.
2 You may need your receipts for a refund.
Business lunches and office supplies add up - and you will want to keep the receipts when they do. "Most companies will provide their employees with a business credit card," said Hendrickson. "Purchases on this card must be followed with receipts that the employer will have to deposit his tax ends." If you are unable to produce a receipt, Hendrickson notes that your business can force you to reimburse them for undocumented expenses. Of course, this is something you want to avoid at all costs. Keep your corporate card receipts in one place and book one hour per month to deposit them according to your business instructions.
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3 You may need to make a return or an exchange.
How many times have you wanted to return something, only to have no chance of finding the receipt? "You must save or at least know where to locate your computer your receipts for all purchases for at least 30 to 60 days after a purchase, depending on the seller's return or exchange policy", explainsLei han, Cpa,Associate teacher of accounting at Niagara University. Keep a physical file for paper receipts and a digital file for online purchases receipts. And voila, you will not be left online at the target.
5 You may have to prove that an item is under warranty.
The guarantees are available for large and small items - and if something you buy comes from it, you must save the receipt. "In the event that something breaks or there is a defect during the warranty period, you can easily recover the proof of purchase when you contact the service provider," explains Han. Keep a file labeled "guarantees" for easy access.
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6 You may need it for insurance.
Often, insurance complaints require receipts. "Floods, forest fires, tornadoes, hurricanes, blizzards and more are more and more common," saidTanya Peterson,,vice-president at FreedomFinancial Network. "If you have been affected by something, be sure to keep all receipts for all purchases made overnight, whether for temporary lighting, a stay at the hotel or any major repair." Your insurance company will likely ask them. In addition, if you receive funds fromFederal administration of emergency management (FEMA) To repay your losses due to a disaster, Peterson says to keep your receipts showing how you spent the funds. "Fema can audit your expenses for three years," she said.AE0FCC31AE342FD3A1346EBB1F342FCB
7 Save your receipts can help you budget.
The last reason to save your receipts is simple budgeting purposes. "When you try to create a budget or stick to one, keep all the receipts and keep an expense journal," suggests Peterson. "Many people are surprised to see what they spend their money on every day." Once you have a clear image of your expenses, you can identify places to be reduced to achieve your financial goals.
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